Negligent Misstatement

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1. LORD DENNING gave a dissenting judgment in CANDLER saying what?

  • A duty of care is owed when the representor knew his statement would be showed and when the representor knew his statement would be relied on
  • Described a 'special relationship' as 'equivalent to contract'
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Other questions in this quiz

2. What is the main policy reason to why the courts have been reluctant to allow C to recover for pure economic loss?

  • Floodgates
  • Insurance
  • Quantifying losses
  • Compensation for bad bargains

3. Special skill, reasonable reliance and actual/constructive knowledge are requirements of what?

  • Duty of care
  • 'Special relationship'
  • Breach of duty

4. What is the case to explain the difference between consequential economic loss and pure economic loss?

  • DERRY V PEEK
  • CAPARO V DICKMAN
  • SPARTAN STEEL V MARTIN
  • CHAUDHRY V PRABHAKER

5. What happened in DERRY V PEEK?

  • D said they had a licence to runs trams, C sued when they invested and lost money when the licences weren't granted. D not liable.
  • Investor asked insurance company for advice on an investment and sued for the negligent advice given. D not liable.
  • Involved health food franchises
  • Agreement to prevent C from gambling, breached duty but failed because C could've bet somewhere else.

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